Datsyuk, 34, has one year left on his current contract. The new deal is reported to be worth $22.5 million with a $7.5 million per season cap hit.
"Based on a couple of brief conversations that I had with Gary Greenstin (Datsyuk's agent) over the last couple of months, I felt that there was an interest in Pav to stay," general manager Ken Holland told the official Red Wings website. "I had my exit interview last week with Pav and we talked a little bit. He called his agent and in the next few days we were able to get the extension done."
Datsyuk was first to confirm the news via his Twitter account, writing:
He can't officially sign the new deal until July 5, the first day a contract that starts in the 2014-15 season can be filed with the League, but at least now the Red Wings and their fans can rest easy.
There had been reports that Datsyuk would consider signing with a team in his native Russia at the end of his current contract. Datsyuk had 15 goals and 49 points in 47 games this season.
The three-time Selke Trophy winner is one of the top two-way forwards in the League and has been a staple in the Detroit lineup since the team won the Stanley Cup during his rookie season in 2001-02. The Red Wings went back to the Stanley Cup Final in 2008 and 2009, winning again in 2008, and Datsyuk had a career-high 97 points in both of those seasons.